Liquid cooling technology is projected to double the cooling market's compound annual growth rate (CAGR) by 2025. However, the substantial capital and sophisticated technology required will likely lead to the first wave of eliminations in the cooling industry, according to Lin Yu-shen, chairman of Taiwan's thermal solutions provider Auras Technology.
Lin made the remarks in response to media questions at the end of the company's recent shareholders meeting. He also noted that the rapid advancement of water cooling could result in shortages of many components, such as quick couplers and pumps. A single server cabinet requires 300-400 quick couplers, and the current production capacity is insufficient, causing skepticism among existing manufacturers about this business opportunity.
Lin highlighted that the launch of Nvidia's Blackwell-architecture GPUs has ushered in a new era of liquid cooling, distinct from traditional air cooling, with cloud service providers, system manufacturers, and component manufacturers embracing liquid cooling solutions.
Liquid cooling necessitates new designs, components, certifications, and responsibilities, disrupting the cooling market and creating fresh opportunities. This shift is attracting new players, particularly with the surge in demand for liquid cooling driven by Blackwell GPUs.
However, while many are currently rushing into the liquid cooling arena, it will become evident by the second half of 2024 to 2025 who truly has the capabilities to succeed in this field, Lin said.
Lin noted that liquid cooling technology is not easy. It currently uses a Liquid-to-Air (L2A) cooling method with a sidecar design, which will eventually evolve into Liquid-to-Liquid (L2L) cooling. The timeline for this transition hinges on the pace of data center construction. Furthermore, the cold plate for liquid cooling is particularly challenging to manufacture.
He explained that liquid cooling components must meet stringent quality standards, necessitating zero defects, unlike other mechanical components that may tolerate a few parts per million (PPM) defects. In addition, while demand for individual components like quick couplers and pumps was previously limited, the surge in demand from AI servers has made shortages inevitable.
Auras can now independently manufacture all major components for liquid cooling and is expanding its capacities in Taiwan and Thailand to meet growing customer demand. Lin revealed that the company plans to raise funds soon to support this expansion, adding that its Thailand plant is integrating automation to enhance production efficiency and quality.
